Forex - NZD/USD up as Chinese inflation data boosts sentiment

Forex Pros – The New Zealand dollar was higher against its U.S. counterpart on Tuesday, after a flurry of Chinese data eased concerns that the country would continue to tighten monetary policy, boosting demand for riskier assets.

NZD/USD hit 0.8195 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8176, gaining 0.28%.

The pair was likely to find support at 0.8113, Monday’s low and a six-day low and resistance at 0.8280, last Friday’s high and close to the pair’s all-time high.

Earlier in the day, Chinese government data showed that consumer price inflation rose at an annualized rate of 5.5% in May, broadly in line with expectations.

Separate reports showed that producer price inflation rose slightly more-than-expected, while retail sales and industrial production data all showed robust growth.

The data eased concerns that the People’s Bank of China would tighten policy further in an effort to control inflation. China is New Zealand’s second largest trading partner.

The kiwi was slightly lower against its Australian cousin, with AUD/NZD easing up 0.03% to hit 1.3005.

Later Tuesday, the U.S. was to publish official data on retail sales and producer price inflation.

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